Industry Intelligence

Supervalu Inc. will reduce its national workforce by an estimated 800 positions, the Minneapolis-based grocer has announced.

Most of these reductions will take place by the close of the company’s fiscal year on Feb. 25, the company said. The reductions include both current positions and open jobs that will not be filled.

After 16 straight quarters of declining same-store sales, this announcement continues Supervalu’s strategic plan to remove permanent expenses from its business as well as reduce overall operating costs, efforts which the company said are necessary toward delivering more competitive pricing to its customers.

The announcement affects all company offices and crosses most departments within the organization. In general, store-level associates will not be affected; associates whose positions are eliminated will be eligible for severance and outplacement services.

“These reductions are necessary to help further strengthen and accelerate Supervalu’s business turnaround in a very competitive marketplace,” said Craig Herkert, CEO and president. “While the announcement of a workforce reduction is difficult news to share, due to its direct impact on our associates, these changes will allow us to better connect with customers and put more authority in the hands of people who interact more closely with our customers.”

About a year ago, Supervalu introduced its strategic vision that focuses heavily on improving its retail business through planned price reductions and an emphasis on hyperlocal retailing at its more than 1,100 traditional retail stores across the country. In addition, the company remains focused on investing capital into the growth of Save-A-Lot, its national, hard-discount banner, as well as continuing to expand its wholesale distribution business to its more than 2,000 independent retailers nationwide.

Supervalu Inc. operates a network of 4,300 stores composed of 1,104 traditional retail stores, including 798 in-store pharmacies; 1,309 hard-discount stores, of which 922 are operated by licensee owners; and 1,900 independent stores serviced primarily by the company’s traditional food distribution business.